Lawrence Meets Medical Market

For every square foot of hospital space built, there is a need for one to two times that amount in support SF, said John Lawrence. He is the developer of the 23-acre Beau Chene Crossing office park on S.E. 28th Street in Bentonville across from Northwest Medical Center of Benton County.

Profit isn’t his sole driving factor, Lawrence said. He has turned down several offers to buy all or part of the land since he purchased it from the city of Bentonville in 2003.

“I have a long-term commitment to this development, this area and bringing it to fruition,” Lawrence said.

He saw Bentonville as a high-growth area but didn’t see anyone specifically catering to the medical and professional services.

“I’ve never believed in a build-it-and-they-will-come mentality,” Lawrence said.

Phase one of the project calls for three 40,000-SF office buildings, which Lawrence plans to build “medically skewed” to support the area.

On July 26, general contractor Crossland Construction Co. of Rogers began site work on the development engineered by Morrison-Shipley Engineers of Lowell and designed by Harrison French Architecture of Bentonville. Phase two plans call for 14 single-story buildings of varying size.

With a potential build-out value of more than $25 million, Lawrence said plans for the project zoned under the C-2 commercial restrictions are flexible. He’s also working on a potential buffer zone of residential property in the third phase of the development. Lawrence said Crossland Construction has been instrumental in the project, ensuring his success before he made the financial commitment.

Bill McClard, senior vice president of Lindsey & Associates Realtors in Rogers and leasing agent for Beau Chene, said about 25 percent of the first 40,000-SF building has been spoken for.

“The location is so good that it should make it successful in itself,” McClard said. “The combination of John Lawrence and the expertise that the Crosslands have in construction will really give this facility a leg up on the competition.”

While earning his MBA at the University of Arkansas in 2001, Lawrence completed a study on the real estate market in Northwest Arkansas. In that study, he found an “extensive need” that was being under-served in the medical community.

Lawrence, who is a national account manager for a supplier to Wal-Mart Stores Inc. and other retailers, began developing property about six years ago. He owns and maintains multiple single-family dwellings as rentals in Bentonville and is involved in a little less than 100,000 SF of leased space in the area as a partner or sole developer.

Prior to account management, he spent 10 years employed in various capacities with Wal-Mart.

“Wal-Mart taught me that with any product offering that everything starts with the customer and stays with the customer,” he said.

Lawrence said he brings that attitude to development.

“I’ve identified a product need catering to the medical and professional services, building a floor plan based on their current needs and future growth plans.”

Growing Medical Needs

As the area’s population continues to grow, so does the medical community.

Mercy Health System of Northwest Arkansas Inc. has about 80 physicians on staff and has plans to add another 40 within the next two years, said Holly Byars, director of marketing and planning for Mercy. Of that 80, at least 22 were added in 2004 alone. Washington Regional Medical Center has 300 physicians on staff, and Northwest Health System has about 320. Doctors can be listed on staff with several different health care providers, therefore it’s difficult to estimate the exact number of practicing physicians in the area.

Based on information from city planners, more than 840,000 SF of medical office and hospital space is planned or under construction in the two-county area. That figure includes the 19,000-SF expansion of Northwest Medical Center of Benton County, the new 350,000-SF St. Mary’s medical campus planned in Rogers and the 150,000-SF medical office building planned on that site.